Oracle delays OpenAI AI data centers to 2028 as labor shortages test infrastructure ambitions
14 Sources
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Oracle reportedly delays several new OpenAI data centers because of shortages -- tight material and labor supply frustrate expansion plans, possibly by a year or more
Oracle has revised delivery schedules for several large AI data centers it is building for OpenAI from 2027 to 2028, Bloomberg reports, citing people familiar with the matter. The delayed facilities are parts of Oracle's commitments under the Stargate AI infrastructure program jointly announced in
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Oracle says there have been 'no delays' in OpenAI arrangement after stock slide
Oracle CEO Clay Magouyrk appears on a media tour of the Stargate AI data center in Abilene, Texas, on Sept. 23, 2025. Oracle on Friday pushed back against a report that said the company will complete data centers for OpenAI, one of its major customers, in 2028, rather than 2027. The delay is due
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Wall Street Sphincters Tighten as Oracle Delays Its OpenAI Data Center Buildout
It turns out infinite growth might not actually be possible. On Friday, Bloomberg reported that Oracle will be delaying some of its data center projects for OpenAI for at least a year due to labor and material shortages. Wall Street, which is definitely not extremely nervous about the
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Volatile Oracle shares a proxy for Wall Street's AI jitters
For a reading of Wall Street's shifting mood on the artificial intelligence investment boom, take a look at the daily fluctuations of Oracle stock, analysts say. Shares of the software giant slumped more than 5% Wednesday following a news report of financing troubles with one of the company's
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Volatile Oracle shares a proxy for Wall Street's AI jitters
Washington (United States) (AFP) - For a reading of Wall Street's shifting mood on the artificial intelligence investment boom, take a look at the daily fluctuations of Oracle stock, analysts say. Shares of the software giant slumped more than five percent Wednesday following a news report of
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Oracle stock down again nearly 5% today as new report claims Blue Owl exits $10 billion Michigan data center deal - ORCL to decline further?
Oracle Stock Crash: The pullback raised fresh questions about how Oracle plans to finance its rapidly expanding AI and cloud infrastructure, just as investor scrutiny over debt levels intensifies. Shares of Oracle fell about 5% in late trading after reports claimed Blue Owl Capital, Oracle's
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Oracle's AI Expansion Highlights Hidden Cost of Data Center Leases - Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL)
Oracle AI Data Centers Oracle Corp. (NYSE:ORCL) is quickly becoming one of the most watched names in the race for artificial intelligence infrastructure. However, as enthusiasm for AI-driven growth accelerates, investors are gradually shifting their focus from the most obvious revenue
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Why Shares of Oracle Are Getting Crushed This Week | The Motley Fool
The markets are growing concerned with the IT company's ability to finance data center build-outs and its partnership with OpenAI. As of the time of writing, Oracle (ORCL +0.88%) stock is down 19.2% over the last five trading days. The move illustrates growing skepticism over the company's
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Oracle denies report on OpenAI data center delays
Oracle denied on Friday a media report that it was delaying OpenAI-related data centers, following investor worries over its debt-fueled AI infrastructure buildout. Shares of Oracle, which had fallen 3.6% following the report, pared some losses to be down by 2.8% in afternoon trading. Oracle
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Oracle's $10 Billion OpenAI Data Center Bet Faces Fresh Doubts After Financing Partner Pulls Out -- Is The Deal In Jeopardy? - Broadcom (NASDAQ:AVGO), CoreWeave (NASDAQ:CRWV)
Blue Owl Capital's (NYSE:OWL) decision to step away from financing an Oracle-backed (NYSE:ORCL) AI data center has become a fresh flashpoint for investors already on edge about the financial architecture behind the AI infrastructure boom. The private capital firm had been in discussions with
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Oracle Pushes Back On OpenAI Data Center Delay Claims - Oracle (NYSE:ORCL)
Oracle Corp. (NYSE:ORCL) stock declined Friday as markets weighed execution risks around the company's rapidly scaling AI and cloud capacity buildout. The pullback followed a Bloomberg report that said Oracle has shifted timelines for several OpenAI data centers to 2028 from 2027, citing labor and
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Oracle denies report on OpenAI data center delays
Oracle denied on Friday a media report that it was delaying OpenAI-related data centers, following investor worries over its debt-fueled AI infrastructure buildout. Bloomberg News had earlier in the day reported that Oracle had pushed back the completion dates for some data centers it is
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Oracle's largest data center partner walks, source says; shares fall
STORY: Shares of Oracle fell as much as 6% Wednesday morning after a key financial partner said it will not help fund a major AI data center. That's according to a source who told Reuters that talks broke down between Blue Owl Capital and Oracle, which plans to build a $10 billion data center in
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Due to shortages Oracle delays several data centers intended for OpenAI until 2028
Oracle has decided to push back the delivery of several data centers planned as part of its strategic partnership with OpenAI, until 2028, according to reports by Bloomberg. These delays concern sites originally expected in 2027 and are said to be due to difficulties sourcing materials as well as a
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Oracle has pushed back delivery timelines for several large AI data centers built for OpenAI from 2027 to 2028, citing labor and material shortages. The data center delays sparked investor concerns about the artificial intelligence investment boom, sending Oracle shares down over 5% before the company disputed any contractual setbacks. The setback highlights mounting challenges in the race to build AI infrastructure.
Oracle Pushes AI Data Centers Timeline Amid Supply Constraints
Oracle has revised delivery schedules for several large AI data centers it is building for OpenAI from 2027 to 2028, according to a Bloomberg report citing people familiar with the matter
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. The data center delays affect facilities that are part of Oracle's commitments under the Stargate AI infrastructure program, jointly announced in January by Oracle, OpenAI, and SoftBank. Bloomberg's sources blame labor and material shortages for the setback, though the overall scope of the projects Oracle will build for OpenAI remains unchanged1
.The delayed facilities are part of a contract between Oracle and OpenAI inked in July, under which the two parties plan to increase Stargate AI data center capacity to two million AI accelerators and 5 GW of power
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. Despite the revised timelines, the U.S.-based AI campuses are still planned on an unusually aggressive scale, with some designed to rank among the largest data centers globally once completed. OpenAI CEO Sam Altman has said the ChatGPT-maker has committed to some $1.4 trillion in investments in AI computing, with some $300 billion reportedly going to Oracle4
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.Oracle Disputes Delay Claims as Stock Volatility Intensifies
Oracle quickly pushed back against the delay reports, with a company spokesperson stating there have been "no delays to any sites required to meet our contractual commitments, and all milestones remain on track"
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. The spokesperson emphasized that site selection and delivery timelines were established in close coordination with OpenAI following execution of the agreement and were jointly agreed upon. However, Oracle did not specify a timeline for turning on cloud infrastructure for OpenAI2
.The news triggered Wall Street's AI jitters, with Oracle shares falling to a session low of $185.98, down 6.5% from Thursday's close
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. The stock volatility reflects broader investor concerns about the sustainability of AI investments and the profitability outlook for massive data center buildout projects. Oracle shares peaked at $345.72 in September after it unveiled a massive inventory of AI work, briefly vaulting co-founder Larry Ellison above Tesla CEO Elon Musk as the world's wealthiest person4
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. But the stock has since fallen more than 45% as investors scrutinize the risk of AI infrastructure overbuilding and the financing of individual projects4
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.Supply Chain Bottlenecks Challenge Aggressive Expansion Plans
The data center delays highlight real constraints in the artificial intelligence investment boom. The Wall Street Journal recently reported that the data center rush has created a shortage of capable construction workers and driven up wages for those available to take these jobs
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. Meanwhile, Trump's tariffs have made construction materials harder to come by and contributed as much as $6 billion in additional costs to the AI buildout, according to Forbes3
.Clay Magouyrk, chief executive of Oracle, said despite obvious bottlenecks, Oracle believes its global expansion plans are realistic. He pointed to 147 active regions, 64 more in development, and roughly 400 MW of data center capacity delivered in one quarter
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. Magouyrk highlighted Oracle's SuperCluster in Abilene, Texas, which houses nearly 200,000 Nvidia GPUs and was built in several months as proof of the company's execution capabilities. "Our SuperCluster in Abilene, Texas, is on track with more than 96,000 Nvidia Grace Blackwell GB200 delivered," Magouyrk told analysts and investors1
.Related Stories
Market Sentiment Shifts as Financing Questions Mount
"Oracle is probably the poster child" for the artificial intelligence investment boom, said B. Riley Wealth Management's Art Hogan, who points to questions about "circular financing" arrangements that have made Oracle and OpenAI dependent on each other for billions of dollars in business
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. This week's gyrations in Oracle shares also followed a Financial Times story describing a $10 billion AI data center project in Michigan as "in limbo" after key partner Blue Owl Capital declined to join the project amid shifting market sentiment around enormous AI spending4
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."Investors are starting to ask questions about the sustainability of the AI trade and the profitability," said Steve Sosnick of Interactive Brokers
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. Morningstar trimmed its price target on Oracle to $277 from $286, pointing to greater uncertainty around the projects. Oracle's elevated debt "leaves little room for error, meaning the new data centers have to generate cash flow as soon as possible to service debt and lease obligations," Morningstar noted, though it views recent events as "minor setbacks that should not alter Oracle's overall capacity ramp-up"4
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.Broader Implications for AI Infrastructure Race
The challenges facing Oracle's data center buildout reflect broader tensions in the AI infrastructure race. OpenAI has also made commitments to other companies as it looks to meet expected capacity needs. In September, Nvidia said it had signed a letter of intent with OpenAI to deploy at least 10 gigawatts of Nvidia equipment, with the first phase expected in the second half of 2026
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. However, Nvidia noted in a November filing that "there is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity"2
.OpenAI is also exploring custom chip design in collaboration with Broadcom. Broadcom CEO Hock Tan laid out a timeline for the OpenAI work in October, stating: "It's more like 2027, 2028, 2029, 10 gigawatts, that was the OpenAI discussion"
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. The head of Oracle stressed that the company continues to see strong demand for AI capacity but emphasized that Oracle only accepts orders if it feels confident it can fulfill them. "We follow a very rigorous process before accepting customer contracts. This process ensures that we have all the necessary ingredients to deliver to customer success at margins that make sense for our business," Magouyrk said1
. The runway for AI companies to crack the revenue code and turn their balance sheets positive is not that long, making any delays in completing these data centers a potential setback for training and deploying AI tools3
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